Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Industry stakeholders have welcomed the Reserve Bank of India's decision to keep policy rates unchanged and maintain its neutral monetary policy stance, saying the move provides stability at a time of heightened geopolitical tensions, volatile commodity markets and global economic uncertainty. Real estate investors and developers believe a predictable interest rate environment will support buyer confidence, capital deployment and project execution. Market participants also expect growing investor interest in alternative investment vehicles such as real estate-focused AIFs as traditional asset classes remain exposed to global market fluctuations. The sector continues to face challenges from rising construction costs and cautious sentiment, but industry leaders maintain that stable monetary conditions will help sustain long-term growth and investment activity.
The Reserve Bank of India's decision to maintain the policy repo rate and retain its neutral stance has drawn positive reactions from the real estate sector, with industry executives stating that policy stability is critical at a time when global markets continue to grapple with geopolitical tensions, commodity price volatility and economic uncertainty.
According to industry participants, the central bank's decision offers predictability for investors and developers while helping maintain confidence in long-term capital allocation decisions. They noted that a stable interest rate environment remains particularly important as financial markets respond to external shocks and evolving global economic conditions.
Ankur Jalan, Chief Executive Officer of Golden Growth Fund (GGF), a Category II real estate-focused Alternative Investment Fund, said the RBI had adopted a prudent approach by maintaining the status quo amid ongoing geopolitical uncertainties, fluctuating commodity prices and disruptions across global markets. He indicated that investors generally value stability during uncertain periods and that the central bank's decision provides a supportive backdrop for long-term investment planning.
Jalan further observed that two trends were gradually emerging within the real estate ecosystem. The first was a potential shift of investment flows away from the Middle East amid regional uncertainty, while the second was the increasing financialisation of real estate as investors sought alternative avenues for capital deployment.
He noted that conventional asset classes such as equities and bonds remained vulnerable to geopolitical developments and market volatility. In comparison, well-structured Alternative Investment Funds provide exposure to tangible assets, comparatively predictable cash flows and portfolio diversification benefits. He added that rising inflationary concerns had increased the appeal of AIFs among high-net-worth individuals and institutional investors seeking risk-adjusted returns.
According to Jalan, the prevailing environment could accelerate investor interest in alternative investment products, particularly those backed by income-generating real estate assets. He stated that quality real estate assets continue to attract both domestic and international capital, supported by a stable monetary policy framework.
Lalit Parihar, Managing Director of Aaiji Group, said the RBI's decision was positive for both the real estate sector and the broader economy. He pointed out that India continues to face inflationary pressures, elevated commodity prices, geopolitical uncertainty and currency-related challenges, making policy continuity an important factor in supporting economic growth.
Parihar noted that the housing market is currently navigating a combination of rising construction costs, cautious investor sentiment and some moderation in demand. In such circumstances, a stable interest rate regime helps preserve affordability, supports homebuyer confidence and offers greater flexibility to developers and investors.
He added that the sector's underlying fundamentals remain resilient, with developers increasingly focusing on disciplined cash-flow management, calibrated project launches and timely execution. According to Parihar, a stable monetary policy environment would support construction activity, encourage capital deployment and strengthen overall market confidence as the sector adapts to ongoing economic challenges.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
